Lansing mayor Virg Bernero’s State of the City address celebrated recent positive economic news for the capitol city.

But perhaps the biggest applause line in the speech last night involved the future of Lansing’s city-owned utility.

Last year, Mayor Virg Bernero appointed a committee to study ways of solving Lansing’s chronic budget problems. One option the panel has been looking at is privatizing the Lansing Board of Water and Light.

Lansing mayor Virg Bernero painted a generally optimistic picture in his ‘State of the City’ speech last night. But the mayor also raised the specter of an emergency manager as well.

“Unlike Flint…Pontiac…Benton Harbor and others who ignored the warning signs…we will not falter…we will act," Bernero told a capacity crowd inside the Accident Fund insurance company building last evening.

The mayor veered away from the positive tone that dominated his ‘State of the City’ address when he referenced Michigan cities that have fallen under the power of emergency managers.

No one’s talking about an emergency manager for the capitol city. But after the speech, Bernero said planning for next year’s city budget will be 'ugly' and 'painful', when it comes to closing a projected $7,000,000 budget deficit.

"The point is tough decisions must be made," Bernero says, "If we don’t, the state will be there…to swoop in and do it for us.”

Bernero’s ‘State of the City’ address mainly touched upon common themes the mayor has spoken about in the past, including the need for regional cooperation with other local governments and aggressive economic development.